How to keep your money safe as markets panic over Coronavirus
- April 22, 2020
- Posted by: WAS Insurance
- Category: Business plans, Economics, Finance & accounting, Investment
This scenario of COVID-19 pandemia is making a huge turnaround in the financial market. For experienced investors it can be worrisome. Now imagine the new investors! Less preparation and experience become a challenge against decisions.
In cryptocurrency market, that is so volatile, is fundamental to be prepared for times like these. Remenber: this is not the first — and won’t be the last — market dip, and it can proove to be a good opportunity to get your investment strategy in check.
Steve Brice, chief investment strategist at Standard Chartered Private Bank, said it’s vital to remember the core investing strategies: go gradual and diversify:
“Market volatility is something that investors should be prepared for, despite the recent volatility being quite extreme”.
Lorna Tan, head of financial planning literacy at Singapore’s multinational bank DBS, reccomend to follow four key pillars. Let’s check them out:
Invest for the long-term
If you don’t have your three-to-six months’ salary saved in cash, it’s time to think about it! In difficult times, any money you’ve invested in the market should be locked away for long-term goals.
Take a look at some top tips for choosing your investments wisely and be always prepared.
Do you ever heard about “dollar-cost averaging”? It’s a strategy to reduce the impact of volatility by spreading out your stock or fund purchases. This allows you to buy more units when the cost is low, and less when the price is high.
We can say that dollar-cost averaging “smooths” your purchase price over time, that’s why it helps ensure that you’re not pouring all your money in at a high point for prices.
Take advantage of compound interest
Have a disciplined investing plan and be stick in it. Compound Interest has a loto f advantages for you getting the most return on money you save or invest. To understand more about it, there’re two types of interest: simple and compound. In simple interest you get the payment only on the money you saved or invested. Compound interest is paid on your principle plus on the interest you have already earned.
Diversify, diversify, diversify
Diversifying your investments can help you reduce loss in your business. Some options to consider are low-cost, passively-managed index funds or exchange traded funds (ETFs) – they give you exposure to a broad range of stocks.
To have specialists in investments and insurance by your side will help you to take confidente moves in this changeller scenario. Count on professionals of WAS Insurance. We have specialists in investment protection – experts prepared to support you.
- Top tips for choosing your investments wisely – https://wasinsurance.com/top-tips-for-choosing-your-investments-wisely/
- Reduce loss in your business – https://wasinsurance.com/reduce-loss-in-your-business/